Dependency Ratio
The dependency ratio is a measure that helps us understand the balance between working-age people and those who are not in the workforce, such as children and the elderly. It is calculated by comparing the number of dependents (usually those under 15 and over 64) to the working-age population (typically ages 15 to 64). A higher dependency ratio indicates more dependents for every worker, which can strain resources like healthcare and pensions, while a lower ratio suggests a more balanced population that could support economic growth more easily.
Additional Insights
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The dependency ratio is a measure that compares the working-age population (typically aged 15 to 64) to those who are considered dependents, such as children (0-14 years) and elderly individuals (65 years and older). It's expressed as a ratio, indicating how many dependents exist for every 100 working-age individuals. A high dependency ratio suggests a larger number of dependents relative to workers, which can put pressure on resources like healthcare and pensions. Conversely, a lower ratio indicates more workers per dependent, often suggesting a more sustainable economic situation.